Onward, Inc., is an exempt organization that assists disabled individuals by training them in digital TV repair. Used digital TVs are donated to Onward, Inc., by both organizations and individuals. Some of the donated digital TVs are operational, but others are not. After being used in the training program, the digital TVs, all of which are now operational, are sold to the general public. Onward's revenues and expenses for the current period are as follows.

Contributions ………………………………………….         $ 700,000

Revenues from digital TV sales ………………………         3,600,000

Administrative expenses ………………………………         500,000

Materials and supplies for digital TV repairs ………….        800,000

Utilities …………………………………………………       $ 25,000

Wages paid to disabled individuals in the training program

(at minimum-wage rate) …………………………………     1,200,000

Rent for building and equipment ………………………..      250,000

Any revenues not expended during the current period are deposited in a reserve fund to finance future activities.

a. Is the digital TV repair and sales activity an unrelated trade or business? Explain.

b. Calculate the net income of Onward, Inc., and the related Federal income tax liability, if any.